Which of the Following Is NOT a Reason Why an IPO

question 24

Multiple Choice

Which of the following is NOT a reason why an IPO is attractive to the managers of a private company?

• A) It gives its private equity investors the opportunity to diversify.
• B) It gives access to large amounts of capital in the IPO.
• C) It reduces the complexity of requirements regulating the company's management.
• D) It gives access to much larger amounts of capital through the public markets in subsequent offerings.

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Definitions:

Research Creativity

The novel and useful contribution to a field of study through the exploration and investigation of unknown territories or ideas.

Interpret Results

The process of making sense of data or outcomes from experiments, studies, or analyses, often to determine their significance or implications.

Explicit Sexual Content

Material in media or literature that openly presents sexual acts or themes.

Sexual Thought

A mental consideration or reflection on sexual matters, which can involve fantasies, desires, or sexual attraction towards others.